i hope this means the estate will chip in and get it bck
The MJ Estate don't appear to want it. To be honest there's not much they can do with it even if they bought it back.
It costs a fortune to maintain so it's a burden that the MJ Estate, as a business entity, could do without.
Even if Paris and Prince could somehow get the money to buy it, they don't earn anything like the money just to pay of the maintenance on something as huge as Neverland.
Thanks fo the update. Good. Hope it becomes a rock around barraks neck.
Mikky Dee;4281982 said:That's very unkind, considering he helped Michael to refinance and stay solvent towards the end of his life, without having to resort to a fire sale of his other assets.
Also, Colony Capital has done a brilliant job of renovating and restoring the property, which had begun to look a bit worse for wear, in the years just prior to and just after Michael's passing.
Hes part of the santa barbara establishment. His involvement and use of thom in pullibg mj in. He business is based on vulturing over those in trouble for his own gain.
His approach to investing is as strikingly original as the man himself. Most celebrated real estate operators these days are in the real estate investment trust (REIT) business--Sam Zell at Equity Office Properties and Equity Residential Properties, Steve Roth at Vornado--but they tend to focus on buildings with strong tenants that can reliably deliver annual returns of 7% or 8%. Barrack shuns what's known in the trade as "chasing yield." He's aiming for returns double or triple that size. To get his gaudy numbers, he'll go to the far corners of the globe, looking for underappreciated assets he can buy cheap, fix up, and resell, usually within about five years. If a potential deal is complicated or politically sensitive, so much the better. Barrack cherishes thorny situations because they scare off most other bidders. Auctions aren't for him. "How do you congratulate yourself when you've outbid eight of the smartest people in the world?" he marvels.
There is much method to his madness. By focusing on distressed properties with lower pricetags, he limits his risk and maximizes his potential gains. He has 182 employees around the world who monitor local markets, looking for opportunities he can exploit. At the same time, he buys primarily high-quality properties--those that, if skillfully resurrected, can command a premium.
myosotis;4281989 said:Sadly, billionaires don't get rich by making generous deals (and we know Tohme was involved in settling the deal too).
The deal with MJ meant: “For every dollar the company (Colony Capital) invested in the property, its equity would increase. This meant that while Jackson—and, later, his estate—retained a stake in the property, it decreased on paper as time went on.” (Ref Forbes). So while MJ (and later MJ Estate) still co-owned the property, the value of their share decreased every day.
It was also agreed that MJ would not have any say in the sale of the ranch: '... when Colony Capital receives an offer for the ranch (even under the fair market value), they would give MJ (and later his Estate) 5 business days to match the offer. If MJ (MJ Estate) doesn't match the offer, it would be deemed that MJ (MJ Estate) consented to the sale.'
After a sale, Colony would receive 12.5% (a minimum of $3.3 million) of the net price of the ranch sale, as a 'success fee', for 'maximising the value of the ranch'.
So Colony clearly had an incentive to maximise the ranch value ie to achieve the best price and thereby gain a higher success fee.
Plus there is the disputed 10% fee to Tohme for setting up the finance deal.
The interest rate agreed for the deal was eye-watering: $20 million at Libor plus 8.5% (11.37% in 2008) plus
$ 3 million at Libor plus 14% (16.87% in 2008)
https://www.scribd.com/document/255769393/Colony-Capital-MJ-Neverland-Deal
ScreenOrigami;4281993 said:Wow, that sounds like a terrible deal indeed. Were there any alternatives at the time? In know this is a newbie question. I haven’t gotten around to looking into all of this yet.
The MJ Estate don't appear to want it. To be honest there's not much they can do with it even if they bought it back.
It costs a fortune to maintain so it's a burden that the MJ Estate, as a business entity, could do without.
Even if Paris and Prince could somehow get the money to buy it, they don't earn anything like the money just to pay of the maintenance on something as huge as Neverland.
I don't know how much MJ truly 'understood' the Colony deal. It's possible / probable he was trusting Tohme Tohme too much, as he did with the TII contract.
I'm guessing that he thought Colony would get a good enough price for Neverland when it sold that he'd be able to repay his Colony commitments and have enough left over to buy another property. We know he was looking at at least one house near Vegas. And he expected to have money from TII.
The interest rates and fees seem extremely high to me, but maybe MJ didn't have the interest / time / resources to double check on Tohme's dealings. Maybe Neverland was such a 'tainted' or upsetting name in his eyes, that he didn't really want to think about it.
It already has. :laughing:Thanks fo the update. Good. Hope it becomes a rock around barraks neck.
The MJ Estate don't appear to want it. To be honest there's not much they can do with it even if they bought it back.
It costs a fortune to maintain so it's a burden that the MJ Estate, as a business entity, could do without.
Even if Paris and Prince could somehow get the money to buy it, they don't earn anything like the money just to pay of the maintenance on something as huge as Neverland.
I hope not... don't want to give the haters more ammo.
Sadly, billionaires don't get rich by making generous deals
Hes part of the santa barbara establishment. His involvement and use of thom in pullibg mj in. He business is based on vulturing over those in trouble for his own gain.
Mikky Dee;4282035 said:I have a feeling that it wouldn't have been easy to sell it, then, even if he had gone down that road, due to the Global Financial Crisis that occurred at around the same time.
Mikky Dee;4282035 said:Agreed, but Michael signed the deal, nevertheless; it obviously was a deal that suited him better at the time, rather than just selling the property outright. I have a feeling that it wouldn't have been easy to sell it, then, even if he had gone down that road, due to the Global Financial Crisis that occurred at around the same time.
People always want to see Michael as some helpless lamb waiting on the chopping block, when really, he was an astute and cunning businessman. Everyone who worked with him in the business arena says this.
Jackson’s biggest expense was $30 million in annual payments on his debt when he died in 2009.
Interest on the loans grew over the years, ranging from a little less than 7% to 16.8% annually, Ackerman said in a downtown Los Angeles courtroom.
As early as 1993, Jackson owed $30 million, a figure that grew to $140 million by 1998. From June 2001 through June 2009, Jackson’s debt increased by about $170 million. When he died, Jackson owed $400 million to $500 million, Ackerman testified.
Ackerman said Jackson received no loans after 2007, and at the time of his death, he was three to four months behind on payments for the San Fernando Valley home where his mother lived.
“He was tapped out,” Ackerman said. ..................................
But Ackerman, whose testimony is continuing, said the singer was in a “precarious financial position.”
He provided details of Jackson’s 1985 purchase of the ATV music catalog, which contains many Beatles songs, for $49.5 million. Jackson merged it with Sony’s catalog a decade later, receiving $115 million, along with a guaranteed $6.5 million a year, which was increased to $11 million annually in 2008.
The CPA also testified that Jackson’s tours in the 1990s were not moneymakers. He said Jackson broke even on the Dangerous tour and lost $11.2 million on the HIStory tour.
To be honest there's not much they can do with it even if they bought it back.
It costs a fortune to maintain so it's a burden that the MJ Estate, as a business entity, could do without.
I visited Graceland last year. The upkeep probably isn't as much as Neverland, but I think they make a lot of money there.
If I ever win big money..... I'm buying it & restoring it the exact same way he had itNatureCriminal7896;4283506 said:Last month, it was announced that the former home of Michael Jackson called “Neverland Ranch” and now called “Sycamore Valley Ranch” was removed from the listing of properties on sale from different Estate Agents.
However, today, the property is back on the market with the selling price of 2019 of $31 Million.
Suzanne Perkins Estate agent has relisted the property on their website emphasizing on the fact that tour will be only given to those
who can provide a financial statement background letter to prove they can purchased the property.
Sorry fans, the future of the once home of Michael Jackson is still unsure!
https://www.suzanneperkins.com/portfolio/sycamore-valley-ranch/